Financial Performance - The company faced significant challenges in 2021 due to the ongoing COVID-19 pandemic, impacting financial and operational performance[10]. - Total revenue increased by 1.3% from HKD 158.4 million in 2020 to HKD 160.4 million in 2021, driven by growth in HEXA and SIXA, partially offset by a 37.7% decline in revenue from Club Cubic Macau[24]. - The company incurred a loss of approximately HKD 72.0 million attributable to owners for the year ended December 31, 2021, compared to a loss of HKD 31.8 million in the same period of 2020, primarily due to the termination of Club Cubic Macau operations resulting in a loss of HKD 16.9 million[31]. - The current ratio decreased to 0.3 in 2021 from 0.8 in 2020, while the debt ratio increased to 154.4% from 98.1%[33]. - Cash and cash equivalents decreased to HKD 2.0 million as of December 31, 2021, down from HKD 9.9 million in 2020[35]. - The company secured a total of HKD 2.6 million through a fully guaranteed special loan scheme during the review period[23]. - The company completed a share subscription of HKD 11.7 million to strengthen its balance sheet[23]. Operational Challenges - The company terminated operations at Club Cubic Macau on October 8, 2021, due to disputes and adverse effects from COVID-19, leading to revenue losses[11]. - Restaurant operations were severely affected by travel restrictions and dining-in policies, with increased costs for ingredients and shipping containers due to global supply chain issues[12]. - The restaurant business experienced a sales decline of 60% to 90% due to the fifth wave of COVID-19, leading to the termination of operations at GaGiNang restaurant[22]. - The company anticipates continued disruptions to operations due to COVID-19 in 2022 and has adjusted its strategies to ensure business continuity[23]. - CUBIC SPACE+ reported impairment losses of HKD 4.6 million on property and equipment, HKD 1.9 million on right-of-use assets, and HKD 9.2 million on goodwill as of December 31, 2021[29]. Strategic Initiatives - The company aims to expand operations into the Greater Bay Area and seek potential business collaborations or investment opportunities[15]. - The management remains cautiously optimistic about the industry's future despite ongoing market uncertainties[12]. - The company will continue to review its existing operations to improve business and financial conditions[15]. - The company is exploring opportunities to diversify its supply sources and negotiate long-term contracts to mitigate supply risks[39]. - The company is in discussions to renew existing leases for its restaurants, which contributed 40% to total revenue in 2021, highlighting the importance of these operations for future growth[39]. Corporate Governance - The company has adopted and complied with the corporate governance code as per GEM listing rules, ensuring transparency and accountability to shareholders[65]. - The management team includes experienced professionals with backgrounds in telecommunications, gaming operations, and financial services, enhancing strategic planning and operational oversight[58][59][61]. - The company is focused on maintaining good corporate governance standards to create long-term value for shareholders and ensure sustainable growth[65]. - The board includes independent non-executive directors who provide independent judgment and oversight, contributing to effective governance[60][63]. - The company has a commitment to maintaining stakeholder trust and confidence through good governance practices[65]. Environmental, Social, and Governance (ESG) Efforts - The environmental, social, and governance (ESG) report covers the company's performance and management measures for the year 2021, focusing on sustainability and stakeholder communication[113]. - The company aims to become a leading music entertainment and restaurant operator in the Greater China region, providing reasonable returns to shareholders while being socially and environmentally responsible[114]. - The company has implemented policies to ensure compliance with environmental laws and regulations, including the Hong Kong Air Pollution Control Ordinance and the Environmental Protection Law of the People's Republic of China[122]. - The company has established a communication framework with stakeholders, including regular meetings and reports, to understand their views on environmental, social, and governance matters[119]. - The company has identified key performance indicators related to environmental and social aspects, which are continuously monitored by management[4]. Employee Relations and Development - The company employed a total of 138 employees during the reporting period, all of whom were full-time, with no part-time employees[158]. - The employee turnover rate for the reporting period was 82.55%, with 123 employees voluntarily leaving for various reasons, including career advancement[164]. - The company promotes a diverse and respectful work environment, ensuring equal employment opportunities without discrimination[166]. - The company has established clear policies regarding compensation, recruitment, and promotion, adhering to local labor laws[166]. - The company has maintained a good working relationship with employees, with no strikes or major labor disputes reported in 2021[173]. Risk Management - The board is responsible for the group's risk management and internal control systems, ensuring effective use of resources to achieve business objectives[97]. - A risk management team has been established, conducting quarterly risk identification and analysis, and reviewing risk management plans[99]. - The internal control system aims to ensure operational efficiency, reliable financial reporting, and compliance with applicable laws and regulations[100]. - The company emphasizes the importance of confidentiality regarding insider information, with strict controls on access and disclosure[100]. - The board has reviewed the effectiveness of the risk management and internal control systems and considers them adequate and effective[102].
陆庆娱乐(08052) - 2021 - 年度财报